HISTORIC PRESS RELEASE : Building Blocks for Better Construction Contract Performance [October 1998]

The press release issued by HM Treasury on 29 October 1998.

A three-year action plan to improve Government performance in procuring major construction projects is being developed, Paymaster General Geoffrey Robinson announced today.

Mr Robinson was speaking at the launch of two reports highlighting areas for improvement in the procurement and performance of Government construction contracts. These were prepared by Professor Andrew Graves of the Bath University Agile Construction Initiative for HM Treasury and the Government Construction Client Panel (GCCP).

Mr Robinson said :

“These reports provide the building blocks for a step change in Government performance in dealing with the construction industry.

“The public sector accounts for 40 per cent of construction industry contracts in the UK. As such a significant client, the Government is excellently placed to provide both a lead for other client sectors to improve their performance and the motivation for the industry itself to change. The industry tells us regularly that change will only occur when Government is seen to be improving itself. We are committed to doing exactly that.

“We shall build on the findings of these two valuable reports in five ways, through :

an action plan to implement the Client Improvement Study recommendations within three years developing better performance measurement and benchmarking, taking account of time, cost and quality criteria applied in the pilot study improved training and skill development for project sponsors, building on a successful scheme developed with the Civil Service College and Reading College of Estate Management six further guidance documents on key aspects of client performance, in addition to three already issued working with all Government Departments and the National Audit Office to develop a strategy to deliver and monitor improvements identified in the Client Improvement Study.

“These reports are entirely complementary to the findings and recommendations of Sir John Egan’s Task Force and ensure that improving Government client performance will be implemented within the framework of Sir John’s work.

“Our actions in response to the reports show our commitment to better client performance. As a construction industry client, the Government has the profile, critical mass and size of business to lead change. That is what we are determined to do.”

The first of Professor Graves’ reports, “The Government Client Improvement Study”, compares Government client and supply side performance against UK and, for the first time, international best practice. It provides directions for Government client improvement in four areas : project management; measurement; standardisation; and integration.

The report highlights a number of areas for improvement:

empowerment of the project sponsor role
flexible use of rules and regulations
need for greater integration in the procurement process
early involvement of all parties in the planning and design of projects; and
use wherever possible of standard processes, components and integrated information technology systems.
The action plan set out today will seek to implement the recommendations of the report in all these areas.

The second report, the “Pilot Benchmarking Study”, examines some 60 projects completed in the last five years, with a combined value in excess of £500 million. It shows, for the first time on Government construction projects, that high level data can be used to demonstrate relationships between project characteristics and project success. This will enable Government to identify and focus on factors which will provide the best basis for the successful delivery of construction projects.